Are You Farm Bureau Financially Savvy?

3/16/2017

According to the 2015 Consumer Financial Literacy Survey by the National Foundation for Credit Counseling, 59% of Americans said they deserve an "A" or "B" when it comes to their own personal financial knowledge. Take this 13-question quiz and test your knowledge.

1. You want to reach a large savings goal - for an expensive vacation, a larger down payment on your next car or a down payment on a house. To maximize your chance of success:

5. If you owe $1,000 on a loan and the interest rate you charge is 20% per year compounded annually. If you don't repay any part of the loan, at this interest rate, how many years would it take for the amount to double?

a. Less than 2 years
b. 2 to 4 years
c. 5 to 9 years
d. At least 10 years

Answer: B

6. If you have caused an accident, which type of automobile insurance would cover damage to your own car?

8. What size of emergency fund is recommended to at least have ready in case of those unexpected situations?

a. 1-3 months of living expenses
b. 3-6 months of living expenses
c. 6 months – 1 year of living expenses
d. 1 – 1.5 years of living expenses
e. None of the above.

Answer: B

At least 3-6 months is recommended, but more never hurts! The ideal emergency savings goal might be as little as three months or as much as two years of expenses, financial advisors say. It all depends on your personal situation.

10. With Farm Bureau Financial Services, if a storm damages your car, home and boat, how many deductibles would you pay to get them repaired?

a. One
b. Two
c. Three
d. Four
e. Five

Answer: A

With Farm Bureau, you can save a bundle by bundling your coverage and have the benefit of only one deductible when multiple covered items are damaged in a single event.

11. True or false: Term insurance can’t be converted to permanent.

A. True
B. False

Answer: B

Many term policies are renewable and convertible to a permanent policy. After holding your term policy for a set period of time, it may be possible to convert it with a special credit for doing so. The credit helps offset any increase in premium and the usual health assessment may be waived.

12. Ethan's income for last month was $2,350. His monthly fixed expenses were $1,550, and his variable expenses totaled $900. Did he have a surplus or deficit for that month?

a. Surplus
b. Deficit
c. Neither - he had a balanced account.
d. Both - a surplus in income and a deficit in expense

13. According to a report by the Federal Trade Commission, 3 million consumers reported losing money to scams, frauds and identity theft in 2015. What was the most common form of reported identity theft?

Tax and wage-related fraud made up 45% of reported identity theft, followed by credit card fraud at 16%. Did you know identity theft is one of the fastest-growing crimes in the U.S.? With Identity Theft Protection, Farm Bureau can both help prevent fraud and, if the worst happens, provide resolution services.

Agent must be a registered representative of FBL Marketing Services, LLC to discuss mutual funds or college funding options.

Health insurance policies vary by carrier & individual and may not be offered through all agents or available in all states. Health insurance is underwritten by a variety of insurance companies not affiliated with our companies.

Long-Term Care and Disability Income insurance policies are underwritten by a variety of insurance companies that are not affiliated with our companies.

IMPORTANT: The information and material contained on this Web site is not an offer to sell or a solicitation to buy any security or any insurance product in any jurisdiction. No security or other insurance product is offered or will be sold in any jurisdiction in which such offer or solicitation purchase or sale would be unlawful under the securities, insurance or other laws of such jurisdiction. Not all products are available in all states. Exclusions, limitations and reductions may apply. This Web site briefly highlights Farm Bureau's insurance policies and their benefits. The contract is contained only in the policy. Farm Bureau products are offered by Farm Bureau agents. For more information about any Farm Bureau product, please contact your local agent or nearest office using the Agent Locator.